Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat

Literature review on Islamic banking and finance revealed that trade-based products such as Murabahah and BBA are widely used financial instruments in Islamic banks. Nonetheless, these two instruments are also known to be controversial. They are seen as instruments that promote consumerism by financ...

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Main Authors:	Abdul Razak, Dzuljastri, Abdul Hameed, Abdul Wahab
Format:	Conference or Workshop Item
Language:	English English
Published:	2015
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/50113/ http://irep.iium.edu.my/50113/1/INTAC6-FP143.pdf http://irep.iium.edu.my/50113/6/50113-programbook.pdf

id	iium-50113
recordtype	eprints
spelling	iium-501132016-06-01T00:46:11Z http://irep.iium.edu.my/50113/ Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat Abdul Razak, Dzuljastri Abdul Hameed, Abdul Wahab HG Finance Literature review on Islamic banking and finance revealed that trade-based products such as Murabahah and BBA are widely used financial instruments in Islamic banks. Nonetheless, these two instruments are also known to be controversial. They are seen as instruments that promote consumerism by financing consumer goods rather than entrepreneurial activities such as Musharakah and Mudharabah. Due to the criticisms, some banks are said to be gradually moving from the use of BBA to other forms of Islamic financing. This study investigates the extent to which the concepts of Murabahah and BBA are being used. Secondly, it examines whether there are other concepts that being used to replace them. The findings indicated that the concept of BBA was indeed widely used while the use of murabahah is very minimal. However, banks are gradually shifting to new concepts such as Commodity Murabahah and Tawarruq. Nonetheless, both these concepts as practiced in Malaysia are still based on debt which is less superior than Mudharabah and Musharakah in meeting the true objectives of Maqasid Al Shariah. 2015 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/50113/1/INTAC6-FP143.pdf application/pdf en http://irep.iium.edu.my/50113/6/50113-programbook.pdf Abdul Razak, Dzuljastri and Abdul Hameed, Abdul Wahab (2015) Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat. In: IIUM International Accounting Conference (INTAC) VI, 28th - 29th October, 2015, Kuala Lumpur. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Abdul Razak, Dzuljastri Abdul Hameed, Abdul Wahab Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
description	Literature review on Islamic banking and finance revealed that trade-based products such as Murabahah and BBA are widely used financial instruments in Islamic banks. Nonetheless, these two instruments are also known to be controversial. They are seen as instruments that promote consumerism by financing consumer goods rather than entrepreneurial activities such as Musharakah and Mudharabah. Due to the criticisms, some banks are said to be gradually moving from the use of BBA to other forms of Islamic financing. This study investigates the extent to which the concepts of Murabahah and BBA are being used. Secondly, it examines whether there are other concepts that being used to replace them. The findings indicated that the concept of BBA was indeed widely used while the use of murabahah is very minimal. However, banks are gradually shifting to new concepts such as Commodity Murabahah and Tawarruq. Nonetheless, both these concepts as practiced in Malaysia are still based on debt which is less superior than Mudharabah and Musharakah in meeting the true objectives of Maqasid Al Shariah.
format	Conference or Workshop Item
author	Abdul Razak, Dzuljastri Abdul Hameed, Abdul Wahab
author_facet	Abdul Razak, Dzuljastri Abdul Hameed, Abdul Wahab
author_sort	Abdul Razak, Dzuljastri
title	Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_short	Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_full	Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_fullStr	Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_full_unstemmed	Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat
title_sort	evaluation on usage of islamic financing contracts in malaysia: a comparative study of bank islam and bank muamalat
publishDate	2015
url	http://irep.iium.edu.my/50113/ http://irep.iium.edu.my/50113/1/INTAC6-FP143.pdf http://irep.iium.edu.my/50113/6/50113-programbook.pdf
first_indexed	2023-09-18T21:10:49Z
last_indexed	2023-09-18T21:10:49Z
_version_	1777411239732838400

Evaluation on usage of Islamic financing contracts in Malaysia: A comparative study of Bank Islam and Bank Muamalat

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